Saudi VAT has been 15% since July 2020. The rate is simple; the operational details are where shops lose money or get penalised.
Inclusive or exclusive pricing?
Retail shelf prices must be shown VAT-inclusive. Your POS should store the inclusive price, back-calculate the VAT per line and round the total correctly to the halala.
Zero-rated and exempt items
Exports, certain medicines and medical goods are zero-rated; some financial services are exempt. Your product master must carry the correct tax category so the return is right automatically.
What the receipt must show
Seller name and VAT number, invoice date/time, line items with VAT, total VAT and total due — plus the ZATCA QR code. Simplified invoices do not need the buyer's details.
The quarterly return
Returns are filed on the ZATCA portal with output VAT (sales) and input VAT (purchases) by category. If your POS and purchases live in the same ledger, the return is a report you print, not a spreadsheet you build.
With Saudia Incorp Accounting, the VAT return is one click and matches the portal boxes. See the accounting edition.
